"They own all of Cars.com and 46 network affiliate TV stations, so they are the advertising vehicle of choice for local auto dealers," said Smead at this year's Morningstar conference in Chicago. "For example, Warren Buffett just bought Van Tuyl, a major auto dealer, and thinks that's a great business to be in. Why? Because a ton of millennials that don't yet own cars are going to get married, have kids, and need cars that fit car seats, and those local auto dealers are going to advertise a lot."

Smead is also bullish on the banks, especially Bank of America (BAC), which he says is in a much better position now that it has paid the majority of its fines relating to the 2008 financial crisis and its aftermath. Shares of Bank of America are down about 5% year-to-date.

"Their moat has widened substantially," said Smead. "They have an inordinately large part of the deposits in the United States, and when the millennials go to borrow money to buy houses and cares they will get a disproportionately large part of that business."

Smead is positive on retailer Cabela's (CAB), down more than 5% this year, saying Americans will spend some of their "dividend" from lower fuel prices on fishing, camping and outdoor equipment. And that's not all. Smead said the company's credit card business is a hidden gem which produces almost half its profits.

"They have a great brand name and have a bit of a cult following," said Smead.

Finally, Smead is a fan of Amgen (AMGN), saying the biotech is undeservedly trading at a market multiple of less than15 times 2016 earnings, even though it has doubled earnings in the last four years. Shares of Amgen are down 2% in 2015 but have risen over 30% in the past 12 months.